Mr. Reddy has an 18 year old son who has just finished his HSC. His son wants to do business management in the US. Mr. Reddy is quite distraught because he realises that although he can pay for his son’s first semester, it will be very difficult to pay for the whole one and a half year course. Mr. Reddy didn’t plan much into the future when he was younger, he didn’t set aside money for his son’s education and he is now facing the problem because of his lack of foresight. Mr. Reddy’s son now has to do his Bachelor’s degree in India. Couldn’t Mr. Reddy have done something different? Couldn’t he have set aside regular savings for this purpose? Couldn’t he have made his son’s dreams come true with a little long-term planning?
Well, Mr. Gandhi seems to think so. He is a 52 year old accountant with an 18 year old son who wants to be an architect, and a 13 year old son, who loves music. Well, his 18 year old son is on his way to the US to pursue a Bachelor’s degree in architecture. What did Mr. Gandhi do differently? From the time Mr. Gandhi’s sons were 6 years old and 1 year old, he has been regularly saving in a life insurance policy, which includes a cash facility to pay for his children’s education. For 12 years Mr. Gandhi has had money compounding in a life insurance policy. All he did was set aside a little money every month in a long term 30 year savings plan. His policy continues to exist for another 16 years. Can you imagine how much benefit Mr. Gandhi will receive?
It is difficult for us to think long term when we all crave for immediate benefit. However, just a little every month in a long term saving plan, that won’t hurt our immediate needs, will give us benefits that are much greater than what we have put in. What’s more, we can make our dreams and the dreams of our families come true, with a little foresight.